$XRP ETFs attracted $1.2 billion from institutions, but this did NOT cause the XRP price to surge immediately. This is due to how ETFs work and broader market factors.
Key Reasons for No Major Price Jump
ETF Mechanics: When money enters an ETF, the provider doesn't instantly buy XRP on public exchanges. They acquire it slowly or through private deals to avoid spiking the price.
Already "Priced In": The market anticipated the ETFs for months. Much of the optimism was already reflected in the price before the launch.
Arbitrage & Hedging: Financial players use complex strategies (like derivatives) to manage ETF-related trades, which limits direct buying/selling pressure on public markets.
Broader Market Conditions: XRP’s price is still influenced by overall crypto sentiment, macroeconomics, and liquidity—not just ETF news.
Supply & Selling Pressure: Large XRP holders can sell into demand, offsetting buying pressure. Also, much ETF buying happens off-exchange, so it's less visible.
Long-Term Investors: ETF buyers (institutions) are typically long-term holders, not short-term speculators, leading to steady—not explosive—buying.
The Bottom Line
The $1.2B inflow is a strong sign of institutional adoption and legitimacy for XRP.
However, don't expect ETFs alone to cause rapid price surges. Significant price movement will require a combination of factors: sustained ETF inflows, improved market sentiment, reduced selling, and a supportive macroeconomic environment.
The current situation is normal market mechanics, not a sign of weakness. Long-term price appreciation is likely to be gradual.
